Franchisees have filed class-action lawsuits against two major hotel brands, saying the companies are illegally taking loyalty fees for guests who, in some cases, don't even know they've been enrolled in frequent-stay programs.
The suits, filed in U.S. District Court in Orlando last month, allege that Wyndham Worldwide Inc. and Choice Hotels International Inc. have inflated the ranks of their loyalty programs and are collecting fees from hotels when those guests stay at franchise properties.
Lawyers for the hoteliers have asked for more than $260 million in damages from Wyndham, and more than $225 million from Choice — figures they termed "very conservative."
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Tuesday, January 11, 2011
Burger King Introducing First Stuffed Burger
Burger King will announce as early as tomorrow (Monday, Jan. 10) the much-anticipated introduction of the first stuffed burger on a national quick-service restaurant chain menu. With a name that is nearly as big a mouthful as the product, the Jalapeño & Cheddar BK Stuffed Steakhouse already has slipped onto the menu in some markets. But several operators told BurgerBusiness.com they were waiting until Monday.
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Monday, January 10, 2011
Canadian-Wild Wing Restaurants Launching Lawsuit vs American Buffalo Wild Wings
(Hospitality Business News) In response to Buffalo Wild Wings announcement of their first store in Oshawa, WILD WING, Canada's fastest growing chicken wing restaurant chain, is commencing a Federal Legal Claim with respect to their intellectual property matters. Wild Wing claims that the name “Buffalo Wild Wings” is too close to their registered name and will cause confusion among both Franchisees and Consumers. WILD WING vows to protect its reputation in association with their trademarks in Canada.
"The growth of WILD WING is attributed to its loyal customers, hard working franchisees and the very dedicated support staff; I personally thank everyone and look forward to helping so many other people achieve their goals and dreams through my amazing journey" stated Rick Smiciklas founder and owner of the company.
WILD WING is the number one chicken wing brand in Canada and attributes this success to the strength and history of the WILD WING brand.
80 Qatar eateries put on notice over service charge
DOHA: The Ministry of Business and Trade has issued notices to 80 hotels in the city to immediately stop adding service charges in their bills.
These hotels were given until yesterday to comply with the directive, which is prohibited by the consumer protection law of the county. The ministry could take legal action against these hotels if they are found adding extra charges despite the warning.
The notices were issued following customer complaints about services charges being levied by some restaurants.
The consumer protection department of the Ministry of Business and Trade early last year banned the practice. It said that the hotels had no right to levy additional charges on top of the price mentioned in the menu. It also ran a campaign about the issue to create awareness among the public.
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These hotels were given until yesterday to comply with the directive, which is prohibited by the consumer protection law of the county. The ministry could take legal action against these hotels if they are found adding extra charges despite the warning.
The notices were issued following customer complaints about services charges being levied by some restaurants.
The consumer protection department of the Ministry of Business and Trade early last year banned the practice. It said that the hotels had no right to levy additional charges on top of the price mentioned in the menu. It also ran a campaign about the issue to create awareness among the public.
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Westin hotel owners write off €21.4m business loan
The owners of Dublin's five-star Westin Hotel, based in a building owned by Treasury Holdings, have been forced to write off a €21.4m loan given to the business.
In April, Starwood, which describes itself as the "principal provider of finance" to the hotel, waived all rights to repayment of loans worth €21.4m, plus accrued interest of €2.5m. The balance sheet of the company shows accumulated losses of €31.3m to the end of 2009.
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The hotel, which is losing €4.5m a year, is owned by US group Starwood Hotels, but the property has been loss-making since it opened, accounts for Westin Hotels Ireland state.
In April, Starwood, which describes itself as the "principal provider of finance" to the hotel, waived all rights to repayment of loans worth €21.4m, plus accrued interest of €2.5m. The balance sheet of the company shows accumulated losses of €31.3m to the end of 2009.
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Irelands Moran's Hotel Group posts 60M euros loss
ONE OF the country’s largest hotel groups, Moran Hotels, suffered losses of €60 million last year, primarily due to an interest charge of €35 million. The company had €678 million of bank loans on its balance sheet as of January 31st, 2010.
TS Taverns, the company behind the Bewleys hotel chain and the Red Cow Inn, posted pretax losses of €46.7 million for the year ended January 31st, 2010, marginally lower than the €47.7 million loss posted the previous year. However, a €15.7 million property impairment charge pushed the total recognised losses to €60.1 million.
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TS Taverns, the company behind the Bewleys hotel chain and the Red Cow Inn, posted pretax losses of €46.7 million for the year ended January 31st, 2010, marginally lower than the €47.7 million loss posted the previous year. However, a €15.7 million property impairment charge pushed the total recognised losses to €60.1 million.
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Sunday, January 9, 2011
Hotel Mirrors Detroit's Woes
DETROIT—The auto show that begins this week gives Detroit the chance to show off a hometown industry on the mend and a downtown flush with upscale hotel rooms.
But many conventioneers' image of Detroit may be shaped by the dark and vacant former Hotel Pontchartrain, directly across from the Cobo Center convention hall. Fully renovated in 2007 then shuttered in 2009, the steel-and-glass hotel stands as a conspicuous symbol of Detroit's stunted redevelopment efforts.
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But many conventioneers' image of Detroit may be shaped by the dark and vacant former Hotel Pontchartrain, directly across from the Cobo Center convention hall. Fully renovated in 2007 then shuttered in 2009, the steel-and-glass hotel stands as a conspicuous symbol of Detroit's stunted redevelopment efforts.
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Macau gaming revenues jump 66 percent in December
Nevada gaming revenues hit an all-time record of $12.8 billion 2007. Macau came close to doubling that mark in 2010.
Gaming revenues in the Chinese Special Administrative Region grew by 58 percent during the year despite talk of the government taking steps to slow the remarkable growth.
The nearly 40 small and large casinos in Macau collected gaming revenues of 188 billion patacas, which translated into roughly $23.4 billion in U.S. dollars based on currency conversion rates.
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Gaming revenues in the Chinese Special Administrative Region grew by 58 percent during the year despite talk of the government taking steps to slow the remarkable growth.
The nearly 40 small and large casinos in Macau collected gaming revenues of 188 billion patacas, which translated into roughly $23.4 billion in U.S. dollars based on currency conversion rates.
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Shareholders want Red Robin put up for sale
NEW YORK (Dow Jones)--Red Robin Gourmet Burgers Inc. (RRGB) is being pressured by shareholders to put itself up for sale.
"We know there's interest in acquiring Red Robin, and that's no surprise given the substantial franchise value," said Gregory Taxin, a co-founder of Spotlight Advisors, which is partnered with Clinton Group to own about 9% of Red Robin.
Red Robin's shares were up 2.2% at $22.25 recently.
Clinton Group and Spotlight Advisors, the third-largest shareholder of Red Robin, said in a letter to the board of directors that "the time has come for the board to proactively solicit proposals for the acquisition of the company," according to an SEC filing summarizing the letter.
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"We know there's interest in acquiring Red Robin, and that's no surprise given the substantial franchise value," said Gregory Taxin, a co-founder of Spotlight Advisors, which is partnered with Clinton Group to own about 9% of Red Robin.
Red Robin's shares were up 2.2% at $22.25 recently.
Clinton Group and Spotlight Advisors, the third-largest shareholder of Red Robin, said in a letter to the board of directors that "the time has come for the board to proactively solicit proposals for the acquisition of the company," according to an SEC filing summarizing the letter.
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Paulson Group Said to Seize Some CNL Hotels From Morgan Stanley
A lender group including Paulson & Co., the New York-based hedge fund run by John Paulson, seized control of former CNL Hotels & Resorts Inc. properties from Morgan Stanley’s real estate funds through a $600 million debt restructuring, said two people with knowledge of the deal.
The transaction involves the corporate debt used to finance Morgan Stanley’s 2007 acquisition of the hotel owner near the peak of the real estate market. Under the terms of the restructuring, $200 million of corporate debt was extinguished and $400 million was converted into equity, said the people, who asked not to be identified because the information is private.
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The transaction involves the corporate debt used to finance Morgan Stanley’s 2007 acquisition of the hotel owner near the peak of the real estate market. Under the terms of the restructuring, $200 million of corporate debt was extinguished and $400 million was converted into equity, said the people, who asked not to be identified because the information is private.
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Accor in talks with Fimalac to sell casino stake
Europe's largest hotel group Accor (ACCP.PA) said on Saturday it is in talks to sell its 49 percent stake in casino group Lucien Barriere to French financial holding company Fimalac (LBCP.PA).
"Accor confirms the existence of talks with Fimalac and Groupe Lucien Barrière about the possible disposal of its 49 percent stake in Groupe Lucien Barrière," it said in a statement.
"Accor confirms the existence of talks with Fimalac and Groupe Lucien Barrière about the possible disposal of its 49 percent stake in Groupe Lucien Barrière," it said in a statement.
Will Hard Rock Casino loose its name
Drug dealing and other wrongdoing by Las Vegas Hard Rock hotel-casino employees and managers is one more reason the casino should lose its rights to the Hard Rock brand, the owner of the international Hard Rock brand says.
In court papers filed Friday in New York in the trademark litigation between Hard Rock Cafe International (USA) Inc. of Orlando and the Las Vegas Hard Rock, attorneys for the Orlando company said they plan to amend their lawsuit to include recent revelations about drug dealing and inappropriate sexual activity at the Las Vegas property.
The Orlando-based Hard Rock company, controlled by Florida's Seminole tribe with extensive gaming interests, sued the Las Vegas Hard Rock in September.
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In court papers filed Friday in New York in the trademark litigation between Hard Rock Cafe International (USA) Inc. of Orlando and the Las Vegas Hard Rock, attorneys for the Orlando company said they plan to amend their lawsuit to include recent revelations about drug dealing and inappropriate sexual activity at the Las Vegas property.
The Orlando-based Hard Rock company, controlled by Florida's Seminole tribe with extensive gaming interests, sued the Las Vegas Hard Rock in September.
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Carl Wilson, Marriott CIO, to Retire, Succeeded by Bruce Hoffmeister as Global Chief Information Officer
Marriott International, Inc. (Hospitality Business News) announced today that Carl Wilson, executive vice president and chief information officer at the company since 1997, will retire March 31. Bruce Hoffmeister, a 22-year Marriott veteran, will succeed him as Global Chief Information Officer on April 1.
Mr. Wilson was instrumental in managing the critical nexus between technology and business strategy as the company’s lodging portfolio grew to encompass 3,500 properties in 70 countries worldwide.
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